Nvidia is officially Wall Street’s $5 trillion darling. The company’s market cap hit $5.05 trillion on Wednesday, a historic first driven by the AI boom that has sent the entire US stock market to record highs. Shares touched $207.86 to seal the milestone.
This valuation, which is now greater than the individual GDPs of India, Japan, and the UK, has been achieved at breathtaking speed. The company added $1 trillion in value in just the last three months, a testament to the “ravenous appetite” for its advanced AI chips.
Nvidia’s CEO, Jensen Huang, is ensuring the company’s dominance continues. He recently announced $500 billion in chip orders and a $100 billion investment in OpenAI, which will use the funds to buy Nvidia’s technology for new datacenters.
The company’s influence is also growing politically. President Donald Trump, who owns up to $1.3 million in Nvidia shares, has been a vocal supporter. He is also floating the idea of allowing chip sales to China, a move that could send the stock even higher.
While investors are celebrating, economic watchdogs are wary. The Bank of England and the IMF have both flagged the risk of an AI bubble. They are concerned that the high failure rate of corporate AI pilots and “circular” deals mean these stock prices are dangerously disconnected from real-world revenue.
